Mutual fund selection for long term goals

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shridhar asked 6 years ago

Hi shrikant sir, I want to create equity portfolio for my long term goals.. I have been investing in birla sunlife frontline equity since last 2 years, but stopped now Can you guide me for large cap which one to choose between UTI nifty50 index fund Or AXIS bluechip fund, Or should opt for both. Thank you in advance

3 Answers

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Sreekanth Staff answered 6 years ago

Hi, May I know the reason for stopping your investments in Birla frontline fund? Do you have investments in any other Scheme(s)?? What is your investment horizon?

shridhar replied 6 years ago

Hi
My investment horizon will be around 15 year as it will be for kids higher education (15yrs need 18lakhs)and retirement( 30 yrs need 1 cr)
I don’t have any other equity investment.
Have liquid fund for emergency.
I stopped birla sunlife frontline equity because it was suggested by you only in my previous question.
So instead birla frontline which large will be better
I will add one hybrid and multicap fund also later.

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Sreekanth Staff answered 6 years ago

Hi, Passively managed large cap index fund can be a better choice. Ex:- UTI nifty index fund. Related article : Top 15 Best Mutual Funds to invest in 2020 & beyond | Top Performing Equity Funds

shridhar replied 6 years ago

Hi sir,
I have invested some lumpsum amount in uti nifty index fund when market was around 8000,
this money is not for any goal just for wealth creation.
Should I redeem this amount with profit because market is 10000 now, and invest again when market will down, as I feel market will fall.
Does it make any sense?
Plz guide me.

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nidhimehra answered 6 years ago

For the Long term, It is always suggested to go for Equity Funds. This is because it is observed historically that equity in the long term never generated negative returns for Investors